Among the many mysteries you’ll encounter as you progress through your trading career, the mystery of effective position sizing will undoubtedly be one of the biggest and most confusing. The mystery seems simple enough to solve, right? Since the solution is really just the answer to the simple question, “How many shares should I trade?” it should be a piece of cake to figure it out. It’s not as simple as you might think though, and here’s why:

When traders, especially new traders, question what size position they should take, most often they are only questioning when …

Have you ever been walking down a sidewalk or a street on a crisp fall day and seen a really crunchy looking leaf lying on the ground?

We all do it. It’s like some weird addiction. When you see a crunchy looking leaf, a pinecone, a collection of branches, you have to step on it. We live for the crunch! It’s so satisfying! It’s kinda like scraping the bottom of your ice cream bowl to make sure you got all the chocolate-syrup-melted-ice-cream-mixture out of it, or sopping up the …